Steelcase Story

<div class='circular--portrait' style='background:#006400;color: #FFE4E1;font-size:4em;'>ST</div>
SCS -- USA Stock  

USD 10.66  0.15  1.39%

Steelcase Book Value per Share is relatively stable at the moment as compared to the past year. Steelcase reported last year Book Value per Share of 7.41. As of 09/21/2020, Dividend Yield is likely to grow to 0.21, while Average Equity is likely to drop slightly above 1.2 B. As some conservative investors are getting more into industrials space, Steelcase could be a your radar. We will analyze why Steelcase investors may still consider a stake in the business. This post is to show some fundamental factors affecting Steelcase's products and services. I will also report how it may impact the investing outlook for Steelcase in October.
Published over a month ago
View all stories for Steelcase | View All Stories
Wild options for Steelcase retail investors
Steelcase reported the last year's revenue of 3.38 B. Total Income to common stockholders was 139.5 M with profit before taxes, overhead, and interest of 1.22 B. About 99.0% of the company shares are owned by institutional investors. Steelcase has price-to-book ratio of 1.61. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 2.08. The firm last dividend was issued on the 7th of July 2020. Steelcase had 5:1 split on the 11th of August 2006.

And What about dividends?

A dividend is the distribution of a portion of Steelcase earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Steelcase dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Steelcase one year expected dividend income is about $0.3 per share.
Steelcase Dividend Yield is relatively stable at the moment as compared to the past year. Steelcase reported last year Dividend Yield of 0.19. As of 10/29/2020, Dividends per Basic Common Share is likely to grow to 2.92, while Payment of Dividends and Other Cash Distributions is likely to drop (308.2 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-300.3 M-308.2 M
Dividend Yield 0.19  0.21 
Dividends per Basic Common Share 2.70  2.92 
Investing in dividend-paying stocks, such as Steelcase is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Steelcase must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Steelcase. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Steelcase's Liquidity

Steelcase financial leverage refers to using borrowed capital as a funding source to finance Steelcase ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Steelcase financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Steelcase's total debt and its cash.

How Steelcase utilizes its cash?

To perform a cash flow analysis of Steelcase, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Steelcase is receiving and how much cash it distributes out in a given period. The Steelcase cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Steelcase Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Steelcase reported last year Net Cash Flow from Operations of 360.8 Million

An Additional Perspective On Steelcase

Steelcase maintains a total of 88.04 Million outstanding shares. The majority of Steelcase outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Steelcase to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Steelcase. Please pay attention to any change in the institutional holdings of Steelcase as this could imply that something significant has changed or about to change at the company. Also note that roughly three million five hundred twenty-one thousand six hundred invesors are currently shorting Steelcase expressing very little confidence in its future performance.

Ownership Breakdown

Insiders
5.02%
Institutions
99.08%
Retail Investors-4.1
Insiders5.02
Institutions99.08

Our take on today Steelcase spike

Steelcase latest coefficient of variation advances over 4730.7. Steelcase shows above-average downside volatility for the selected time horizon. We advise investors to inspect Steelcase further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Steelcase future alpha.

Our Conclusion on Steelcase

While some other companies within the business equipment & supplies industry are still a little expensive, even after the recent corrections, Steelcase may offer a potential longer-term growth to retail investors. While some before the next press release oriented retail investors may not share our view, we believe it may not be a good time to take over new shares of Steelcase.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Steelcase. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com